Ireland’s negotiations with the ECB and the IMF are perhaps the most important talks that this country has engaged in since Michael Collins and Arthur Griffith negotiated the Anglo-Irish Treaty with the British Prime Minister, Lloyd George, in late 1921… Unless… the following four truths are accepted by those on the other side of the table, the country will be presented with an agreement that will blight its future for at least a generation.
- If Ireland has to pay interest on the loans being negotiated at a rate which exceeds the rate at which the economy grows over the next few years, it will make the country’s situation worse, not better.
- Any grant or loan to Ireland will only buy time for the eurozone to come up with a cure for the whole sick system. Ireland should not be asked to bear more than its proportionate share of the cost of gaining this time which is for the benefit of every euro user.
- The ECB bears a large share of the responsibility for the regulatory failure which led to the property bubble.
- There is a Plan B. Ireland doesn’t have to take anything that is offered. It can leave the euro quickly and easily.